§ 25-2-609. Right to adequate assurance of performance. - North Carolina Statutes

§25‑2‑609.  Right to adequate assurance of performance.

(1)        A contract for saleimposes an obligation on each party that the other's expectation of receivingdue performance will not be impaired. When reasonable grounds for insecurityarise with respect to the performance of either party the other may in writingdemand adequate assurance of due performance and until he receives suchassurance may if commercially reasonable suspend any performance for which hehas not already received the agreed return.

(2)        Between merchantsthe reasonableness of grounds for insecurity and the adequacy of any assuranceoffered shall be determined according to commercial standards.

(3)        Acceptance of anyimproper delivery or payment does not prejudice the aggrieved party's right todemand adequate assurance of future performance.

(4)        After receipt of ajustified demand failure to provide within a reasonable time not exceedingthirty days such assurance of due performance as is adequate under thecircumstances of the particular case is a repudiation of the contract. (1965,c. 700, s. 1.)